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Thursday, 5 June 2014

How to Get Answers When You Don’t Know What Questions to Ask

Have
you ever been so confused by something that you didn’t even know how to explain
what you were confused about? That’s how I felt when I applied for a student
loan.
In
the fall of 2010 I was accepted into the BA in Professional Communication
program at RRU. I knew I was going to have to borrow money to go to school and
with over 8 months before my program started I figured I had lots of time to
figure out the whole student loan thing.

According
to my mom, when she was in university (in the 70’s) she got student loans
through the bank, so I thought it would be the same for me. I made an
appointment at my bank and said I wanted to take out a student loan. The
advisor looked at me, blinked a few times and said “Oh we don’t handle student
loans. You get those through the government.”

This
was the first of many confusing moments. I had next to no experience with
borrowing money and didn’t understand how government student loans worked. I
found myself unsure about seemingly simple things (does my money come in the
mail?) but didn’t know where to go for help. The few times I did call the
government seeking information I either contacted the wrong department or, when
I finally did get through, felt embarrassed by how little I knew. I stuttered
through many a phone call with the National Student Loan Service Centre, trying
to get answers when I really didn’t know what questions to ask.

Now
that I work in the Financial Aid & Awards office at Royal Roads, I help
students every day to navigate the loan system. I’ve come to realize that I was
not alone in my confusion with the student loan process. There is much to know
about student loans, and I can’t begin to list it all here, but these are some
of the main things I wish I had known when I was a student applying for my
first loan…

Federal
or Provincial? Where does my student loan come from?

You
apply for funding through your province of residence*; however the funding you
receive will usually consist of a mix of provincial and federal funding. When
you apply for funding you only need to submit one application and the
government will determine what portion of your loan is federal and what portion
is provincial.

Some
provinces, like BC, have integrated student loan programs. This simply means
that the federal and provincial portions of your loan have one administrator – the
National Student Loan Service Centre – making them easier to manage. For
example, when your loan enters repayment you deal directly with the NSLSC and
make one monthly payment that covers both the federal and provincial portions of your loan. (In the old days of student
loans you could end up making payments to two or 3 different lenders at a
time!)

*To
be considered a resident you must have lived in the province for at least 12
consecutive months, excluding time in full-time post-secondary studies.

What about grants? How do I apply?

You
will automatically be assessed for grants when you apply for a student loan. (More information on federal and provincial grants here.)

If
you are a student with a permanent disability, your disability status must be
approved by the government in order to access certain grants. ContactAccessibility Services
for more information.

When
do I get my money and how?

Your
student loan will be deposited directly to your bank account. You can request a
cheque if you want, but keep in mind that your funds will take longer to
arrive.

You
will generally receive your funding in two disbursements: one at the start of
your student loan study period and one about halfway through. The first
disbursement is usually the larger of the two.

TIP:
Disbursement dates can be found on the Notice of Assessment from your loan
provider. If you're waiting on your loan disbursement in order to pay tuition you can request a tuition deferral.

When
do I have to pay back my loan and how does it work?

Interest
begins to accrue on your loan the day after your student loan study period
ends*. You are not required to make payments for six months, although you can
if you want to get a head start!

About
45 days before your loan enters repayment you will receive a letter from the
National Student Loan Service Centre outlining the details of your repayment. Check out the CanLearn website for more information on student loan repayment.

TIP:
Make sure your address is up to date with the NSLSC so that you don’t miss
important information about your loan. Create an account at CanLearn.ca to update your contact information quickly.

*Your student loan
study period end date might be different than your program end date. In this case, you may need to submit some extra
paperwork to the government in order to keep your loan from collecting interest
or entering repayment while you are in school. Contact Financial Aid & Awards for more
information and assistance.